Intensified efforts to combat identity theft

early next year with recommendations regarding the private sector use of Social Security numbers. Many of the Task Force initiatives are designed to help identity theft victims. For example, the FTC has published an identity theft victim statement of rights on its Web site and at another, dedicated Web site, and is working with the Department of Justice to develop expanded resources for victims through DOJ grants to not-for-profit victim advocates. The FTC also is partnering with the DOJ, the U.S. Secret Service, and other government agencies to expand its training for state and local law enforcement. Since 2002, 26 training sessions for more than 3,300 officers from more than 1,000 agencies have been conducted, and several more sessions are planned for the coming months. The FTC also has developed a “universal police report” that identity theft victims can complete online, print, and take to a law enforcement agency for verification. With this report, victims can request that fraudulent information on their credit report be blocked and obtain a seven-year fraud alert on their credit.

According to the testimony, as many as 20,000 consumers contact the FTC every week for information on how to guard against identity theft or to obtain assistance in recovery. The agency receives about 250,000 reports of identity theft every year, and these consumers receive step-by-step guidance on how to minimize the harm and recover from the crime. Victims’ experiences are added to the agency’s Identity Theft Data Clearinghouse, which is accessible to more than 1,700 investigative agencies for their use in their law enforcement efforts. The testimony also summarizes the Commission’s efforts to implement the identity theft -related provisions of the Fair and Accurate Credit Transactions Act. For example, the FTC and bank regulatory agencies recently issued the final Identity Theft Red Flags guidelines and rules, which require businesses that hold consumer accounts to develop and implement an “Identity Theft Prevention Program.”

The FTC has acted aggressively on several other issues that threaten consumer privacy, according to the testimony, including law enforcement actions against “pretexting,” a practice in which perpetrators use fraud or pretense to obtain access to consumers’ financial information, telephone call records, or other sensitive information. In addition, The Commission has brought 11 spyware cases, 92 law enforcement actions involving spam (since 1997), and 34 cases alleging that telemarketers violated the provisions of the National Do Not Call Registry or other aspects of the FTC Telemarketing Rule. Last month, the testimony noted, the Commission announced its latest crackdown on Do Not Call violations, including a lawsuit and six settlements involving such prominent companies as Craftmatic Industries, ADT Security Services, and Ameriquest Mortgage Company, resulting in total fines of almost $7.7 million. The testimony noted that the FTC also enforces the Children’s Online Privacy Protection Act (COPPA), which prohibits the collection, use, or disclosure of personal information from children under age 13 without prior parental notice and consent. Since 2000, the agency has brought 11 COPPA enforcement actions, obtaining more than $1.8 million in civil penalties, and more COPPA cases are forthcoming.